By Alex Pulliam, NAI Maestas & Ward Land and Industrial Advisor
Historically, the South Valley has held a reputation for being a less desirable submarket of Albuquerque but as the industrial real estate market witnesses a shrinking supply of suitable properties, the area has gained interest from active buyers. It is particularly attractive for industrial users looking for both large land area and sizeable warehouse buildings- as evidenced by the recent sale of 121 Dale Ave. SE, a 7,000 SF warehouse on 2.5 acres.
The building was originally marketed as a lease option, but interest came from buyers looking to occupy the space. After talks with its multinational corporate owner, it was determined that a sale option was the best path forward. Making the property available to purchase resulted in multiple offers leading to a “best and final offer” request. Ultimately, the purchaser was a local user looking to relocate and expand his trucking operations. The property went under contract in early January 2020 following two months of negotiations.
The buyer benefited from competitive SBA interest rates and the deal was slated to close in March. But when March came around, financial institutions faced direct impacts of COVID-19 as PPP Loans consumed lender’s time and resources. This caused significant delays in the transaction which finally closed in early June.
Granted the transaction took longer to close, the attractive SBA rates combined with the quality of the property were compelling enough for the buyer to remain engaged in the sale process. When the transaction closed, it sold at the high end of the market relative to other recent sales in the area. The buyer benefited from a feasible monthly outlay thanks to SBA rates and incentives.
Through the CARES Act the SBA continues to offer competitive rates, and buyers looking to purchase could benefit from the SBA making their first six payments. For owner-occupied buyers, this is an ideal time to consider purchasing if they can find the right property. For sellers, this is the ideal time to explore selling because there is a limited supply and demand for industrial property with key industrial traits remains high regardless of location.
In addition to Alex’s industrial insights, she is known for problem-solving with the right people to get the job done. She is committed to her goal of meeting deadlines and prioritizing her daily activities to exceed her client’s expectations.
For more details on this transaction and other industrial opportunities, contact Alex Pulliam or Riley McKee